What are the Consequences If You Breach Of Contract in UAE During Pandemic?

civil law


September 30, 2020



| Your comment matters, please click here to rate article!

Our economy constantly bled for several months due to severe impact of coronavirus and world is trying its best to recover from the damage sustained. In this crucial times, many corporate entities or individuals may benefit the situation if they are under a corporate obligation.

The impact of coronavirus has the resulted in many exceptional ways of breaching the provisions of contracts or terminating them. Commercial lawyers of Dubai in the said article will discuss the legal consequences of breaching a contract during COVID-19 in UAE.

The Commercial transactions and Civil Procedure Law of UAE allows parties to define the terms of their contract and work according to such terms unless those terms oppose to the public policy of the country. In general the basic principle of contract is the consent which shall be duly received at the time of signing the contract in accordance with Article 257 of the UAE Civil Code.

It further obliges the party to clearly define their intentions under the contract and shall develop their contractual relationship explicitly. Having said that, it shall also define the circumstances under which the contract can be terminated or the consequences for breaching the provisions of the agreement.

Similarly, any discussion pursuant to the impact of coronavirus on any party to the contract shall be in relation to the provisions of the contract. Generally speaking the impact of coronavirus on an individual is as such that the party is unable to perform its obligations mentioned in the contract.

Having said that, there are various circumstances a contract can be breached or terminated by the either party which accordingly gives the right to the other party to file a claim for seeking consequential damages for the same. In the present circumstances, it is more likely that the contracts can be subject to a breach in event the other party fails to perform its contractual obligations which on the other hand can be defended that failure to perform such obligations was an outcome of coronavirus.

In line with the foregoing, the basic remedy available to any party suffering in the contract is to claim consequential damages from the other party which were incurred due to failure of other party to perform its obligations.

Nevertheless, the present circumstances are most likely to be considered as a force majeure event which defined as an event depriving the parties to adhere with their contractual obligations. The impact of coronavirus was as such that we were and are mostly forced to temporarily shut our businesses (as per the regulations of the government). In further Article 273 and 287 of the Civil Code allows partial or complete termination of contracts if the parties are incapable of performing their duties due to such force majeure event.

In light of the afore-mentioned, it is all unprecedented that the suffering parties will be able to claim damages for the loss suffered due to failure of other parties if the other parties challenges the claim on grounds of force majeure. It is high time to seek professional advice from Commercial Lawyers of Dubai to ascertain your position under the commercial contract.

Related Links

Copyright © of this article is retained by the author and/or other copyright owners. We explicitly grant you permission to download a copy, without any alteration, of this article for personal non-commercial research or study, without prior permission or any charge. This article can be utilized on your website or for marketing, however, we grant you permission to host this article on your website and no other rights. This content should not be altered in any way or sold commercially in any format without prior permission of the copyright holder. During reference of this article, full biographic details entailing the name of the author, his designation, the institute and the publishing date of the article shall be provided.


No comments found.

Leave a Comment

Your email address will not be published. Required fields are marked *

Want to know more?
Then talk to us.

Client Testimonials

I owe the success of my case to Dr. Hassan's diligent approach. He remained focused, put me at ease and always went the extra mile. Dr. Hassan tirelessly put my case in the best possible light and I cannot thank him enough. I would highly recommend Dr. Hassan - I am grateful to him from the bottom of my heart.

Raphael Lauria
Manager, FME General Trading

Dr. Hassan Elhais is among the best legal consultants I have ever worked with. He has an amazing ability to reduce complex issues into a simple concept that non-legal people can understand. He consistently develops innovative litigation strategies that help us to achieve our ultimate legal goals.

Zhuo Liu

...the extraordinary effort that has been exerted by the staff, and we specially thank Dr. Hassan Mohsen Alhais. Wishing your continues success & excellence...

H.H. Sheikh Saeed Bin
Mohammed Hashir Al Maktoum

I believe everyone should recognize what a difference Dr. Hassan Elhais work has made to people's lives; and especially to our family's life, because we will remain forever grateful to each and every one of his team.

Luis Pozueco

Dr. Hassan Elhais never fears cases that involve exposure and he always gives me his honest assessment of our chances of success, which is invaluable to me.

Bassam Yamout
Director, JM Metal Trading LCC

He aided us not only in providing legal advice but also in all legal issues that required a long term strategic approach to achieve most favorable and optimum outcomes he provided us with high level of professional service.

Philippe Delbecq

Dr. Hassan Elhais is a responsible, reputable counsel who operates to high levels of service.

British Client

Dr Hassan Elhais is responsive, thorough and creative with his advice, and is a valued advisor and legal consultant.

Asma Mattar
Manager, Italian Style

Regardless of the complexity of the matter I know Dr. Hassan Elhais will consider not only legal strategy but also business practicalities in providing advice and litigation options.

Dr. Massimo Hakim
Chairman, Italian Style

I recommend Dr. Hassan Elhais to anyone who says 'I'm in legal trouble'. I was extremely satisfied with the high standard of his work. He has always been there when I have needed him and I refer all my clients, family and friends to him/his firm.

Manish Gupta
Marketing Manager, Express Digital System

Dr. Hassan Elhais was very professional and he listened to my needs. He was very prompt, efficient and always kept me informed. Dr. Hassan Elhais's service was excellent and I would definitely recommend him to friends and colleagues.

James Horsley
British Client

Select your Language:


Main Menu